We demonstrate the critical need to recognize the presence of two different types of satisfaction for effective channel governance—economic satisfaction, that is, a channel member’s evaluation of the economic outcomes that flow from the relationship with its partner, and social satisfaction, a channel member’s evaluation of the personal contacts and interactions with its exchange partner. Measurement instruments permitting channel researchers to make the distinction between economic and social satisfaction are developed and tested. We provide evidence on the relevance of this distinction by showing that the two types of satisfaction occupy unique positions in a nomological network, as determined by differential relations with partner’s use of power and responses to channel relationship problems. The implications of these differences in effects are discussed and indicate that channel managers should be aware of the kind of satisfaction they are fostering in their channel counterparts.